Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Chapter 12, Problem 16MCQ
To determine
Introduction: The Internal Revenue Service (IRS) has a wide range of functions and responsibilities such as look after of administration of federal taxes, and to perform duties like estimating, determining, and collecting taxes in the form of revenue to the government, it also performs tax return audits and imposes penal provisions. It is the office within the revenue department. The task of the department is to provide the taxpayers with quality service by assisting them in proving knowledge content so the taxpayers understand their tax responsibility and pay taxes timely. It is important in maintaining and establishing tax laws.
To choose: For paying taxes in joint return both are responsible except which option.
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Which of the following is NOT a condition a taxpayer must meet to claim injured spouse?
O Must file married ting separately.
O Received and reported income on a joint retur
O Made and reported tax payments, such as withhoefing or estimated tax, or is eligible for EITC or other refundable credits on a joint return
O is not required to pay the past-due amount.
How do two taxpayers determine who has priority to claim the dependency exemption for a qualifying child of both taxpayers when neither taxpayer is a parent of the child (assume the child does not qualify as a qualifying child of either parent)? How do parents determine who gets to deduct the dependency exemption for a qualifying child of both parents when the parents are divorced or file separate returns?
Fill in the blank. When taxpayers file jointly and only one spouse owes a past-
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Chapter 12 Solutions
Income Tax Fundamentals 2020
Ch. 12 - Which of the following is a responsibility of a...Ch. 12 - Prob. 2MCQCh. 12 - Prob. 3MCQCh. 12 - Prob. 4MCQCh. 12 - Prob. 5MCQCh. 12 - Prob. 6MCQCh. 12 - Prob. 7MCQCh. 12 - Prob. 8MCQCh. 12 - Prob. 9MCQCh. 12 - Prob. 10MCQ
Ch. 12 - Prob. 11MCQCh. 12 - Prob. 12MCQCh. 12 - Which of the following have privileged...Ch. 12 - Prob. 14MCQCh. 12 - Prob. 15MCQCh. 12 - Prob. 16MCQCh. 12 - Prob. 17MCQCh. 12 - Taxpayers have the right to have an IRS...Ch. 12 - If a U.S. Tax Court agrees with the taxpayer on...Ch. 12 - If the IRS owes a taxpayer a refund, the law...Ch. 12 - Prob. 21MCQCh. 12 - Melodie's taxable income is $39,000 and she pays...Ch. 12 - Jim has a house payment of $2,000 per month of...Ch. 12 - Indicate which of the following statements are...Ch. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - In the 2019 tax year, Michelle paid the following...Ch. 12 - Prob. 5PCh. 12 - Prob. 6PCh. 12 - Prob. 7PCh. 12 - Prob. 8PCh. 12 - Prob. 9PCh. 12 - Prob. 10PCh. 12 - Prob. 11PCh. 12 - Prob. 12P
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- Which of the following is not tax exempt? A. Amount of any damages received by agreement on account of injuries sustained. B. Consequential damages representing the loss of the victim’s earning capacity awarded by the courts to the heirs of the victim. C. Award of compensatory, actual, moral, and exemplary damages. D. None of the above E. All of the abovearrow_forwardWhich one of the following conditions must be satisfied in order for a married taxpayer to be taxed on only his income if he resides in a community property state? a.The husband and wife must live apart for the entire year. b.The husband and wife must live apart for more than half the year. c.The husband and wife must be in the process of filing for a divorce. d.Only one of the spouses can be working and earning an income. e.None of these choices are correct.arrow_forwardAs a result of several anti-avoidance provisions of the Income Tax Act, property income shifted to a spouse or child in a lower tax bracket will typically a. be permitted to utilize the lower tax rate. b. be disallowed unless the child is under the age of 18. c. be attributed back to the transferor of the property or subject to the top personal tax rate. d. be attributed back to the transferor of the property or subject to the lowest personal tax rate.arrow_forward
- Of the following statements regarding the estate tax, which is true? O A decedent's taxable estate is never greater than the probate estate. 4 O The taxable estate is reduced by deductions for decedent liabilities, funeral costs, and administrative costs of settling the estate. O The estate tax is not reduced by transfers to the decedent's spouse. O The estate tax exclusion is not reduced by any lifetime gift tax exclusion used by the decedent.arrow_forwardA taxpayer gives the following reasons in refusing to pay a tax. Which of these reasons is not acceptable for legally refusing to pay the tax? That he has been deprived of due process of law. That the prescriptive period for the tax has elapsed. That he derives no benefit from the tax. That there is lack of territorial jurisdiction.arrow_forwardWhich of the following are characteristics of the gift-splitting technique? A)If the spouses divorce, they can continue to split gifts to the end of the calendar year. B)It results in a reduction of gift tax liability for a gift from a donor spouse to a donee spouse. C)A gift tax return does not need to be filed for a split gift if nothing remains taxable after the split. D)A gift from a donor spouse is treated as if one-half is from the donor spouse and one-half is from the other spouse.arrow_forward
- Which of the following statement is correct? Statement I – The renunciation by the surviving spouse of his/her share in the estate of the deceased spouse in favor of all their legitimate children shall be exempt from the donor’s tax. Statement II – Donations made between spouses are void except when they were made on the occasion of a family rejoicing and the amount is moderate. True Both statements are true. Only Statement II is true. Both statements are false. Only Statement I is true.arrow_forwardIn choosing between taking the standard deduction and itemizing deductions from AGI, what effect, if any, does each of the following have? a. The age of the taxpayer(s). b. The health (i.e., physical condition) of the taxpayer. c. Whether taxpayers rent or own their residence. d. Taxpayers filing status (e.g., single, married, filing jointly). e. Whether married taxpayers decide to file separate returns. f. The taxpayers uninsured personal residence was recently destroyed by a wildfire (the region was declared a disaster area by the Federal government). g. The number of dependents the taxpayer can claim.arrow_forward
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